Question

what is the treatment of provision for repairs in final accounts of sole trader?​

Answer 1

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the treatment of provision for repairs in final accounts of sole trader are:-

1. M. C. Sharma Associate Professor Department of Commerce Shaheed Bhagat Singh Evening College (University of Delhi) Delhi

2. For Quick Revision of following topics, please see my presentation ‘Financial Statements of Sole Trader with Adjustments 1  Meaning and Need of Adjustments  Important Adjustments:  Closing Stock  Outstanding Expenses  Prepaid or Unexpired Expenses  Accrued Income  Unearned Income or Income Received in Advance  Depreciation  Bad Debts  Provision for Bad and Doubtful Debts  Provision for discount on debtors 2

3. Learning Objectives: Accounting Treatment of Adjustments:  Provision for discount on creditors  Interest on Capital  Interest on Drawings  Interest on Loan  Loss of goods by fire, theft, accidents etc.  Goods withdrawn by proprietor for personal use  Goods given as charity  Goods distributed as free sample  Goods used in construction of a fixed assets  Goods sold on sale or return basis

4. Learning Objectives: Accounting Treatment of Adjustments:  Loss of fixed assets  Commission payable to manager  Writing off deferred revenue expenditure  Errors and omissions  Other adjustments

5. Provision for Discount on Creditors  This adjustment is not supported by Prudence Principle.  If it is given in the question, then it will be treated accordingly.  Calculation of provision for discount on creditors, depends upon our past experience. Adjustment Entry: Provision for Discount on Creditors Dr. To Profit and Loss A/C

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